Greenwashing: Theoretical Framework and Accounting Perspective
Chapter from the book: Hacıhasanoğlu, T. & İğde, M. (eds.) 2023. Accounting and Auditing on the Axis of Current Developments.

Gökçe Sinem Erbuğa
Dokuz EylülUniversity

Synopsis

Today, environmental crimes have started to take place in the agenda of both for businesses and states. Greenwashing, as one of the environmental crimes, has started to take place more in the literature as an accounting fraud, especially during and after the pandemic period. Greenwashing represents a contradiction that occurs as a result of the differentiation of an officially declared behavior from the current/actual behavior in company reports. Greenwashing is expressed as the fact that the business carries out its activities in the form of insensitive to the environment or creating a negative externality, although it draws an environmentally friendly image in its activities. Greenwashing, which causes businesses to gain unfair competitiveness, profit and corporate image, is a kind of accounting fraud and should be examined as a fraudulent financial statement crime. Besides, greenwashing is highly parallel with money laundering. In both types of crime, perpetrators launder the proceeds of crime they have committed and redirect them to the financial system. In addition, in order to hide the criminal activities in both types of crime, the perpetrators establish front businesses that do not engage in any trade or production activities and transfer funds through these companies. Examples of greenwashing are frequently encountered in every sector. In this study, the greenwashing actions have been discussed and the paradox of these actions has been evaluated. In addition, in order to prevent greenwashing some recommendations were made.

How to cite this book

Erbuğa, G. S. (2023). Greenwashing: Theoretical Framework and Accounting Perspective. In: Hacıhasanoğlu, T. & İğde, M. (eds.), Accounting and Auditing on the Axis of Current Developments. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub77.c324

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Published

March 25, 2023

DOI